Honda is stepping back from some of its EV plans in North America and putting more money into hybrids instead, a sign that major automakers are increasingly responding to short-term demand instead of moving more aggressively toward fully electrifying vehicles.
The company faces up to $15.7 billion in restructuring costs as it moves away from electric vehicles, per CNBC.
During a briefing Thursday in Tokyo, Honda said it is indefinitely pausing its planned Canadian EV value-chain project. Unused capacity at its Ohio auto plants will be redirected to gas and hybrid output, and every North American plant will be able to produce hybrid models.
Honda said the coming three years will center on overhauling its car business, with hybrids playing a much larger role than it had previously outlined. Initially, Honda stated that it would phase out gas cars by 2040, but this is clearly no longer the case.
The automaker said that it will roll out 15 new hybrid models worldwide by the close of the fiscal year ending March 31, 2030, with North America as a key target. It also plans to bring bigger hybrid vehicles to North America in 2029.
"Honda will continue striving to achieve carbon neutrality by 2050 as a responsibility of a comprehensive mobility company," it noted. "While carefully assessing the market environment and demand trends in each region, Honda will accelerate a multifaceted approach to achieving carbon neutrality, which will include EVs, hybrid vehicles, carbon-neutral fuels, and carbon-offset technologies."
While hybrids are cleaner than gas-only cars, they still rely on fuel and create tailpipe pollution. A slower shift to fully electric vehicles means more heat-trapping pollution in the atmosphere, which will drive up global temperatures and spur more extreme weather disasters.
And for everyday drivers, fewer EV rollouts can mean fewer affordable electric options at dealerships, slower growth of charging networks, and more dependence on unpredictable gas prices. Communities near heavily traveled roads may also have to wait longer for the cleaner air that comes with zero-tailpipe-emission vehicles.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
Cool Picks
